Dscr loan for rental properties

Most Popular Reply

Eric Clark
Lender · OR · Member since 2025 · 53 posts · 2 votes
8mo

Yes, it's definitely possible. In fact, most business-purpose lenders actually prefer or even require that you close in an LLC rather than your personal name. It keeps the deal clean and professional.

The 'no cash' part is where it gets a bit more involved. While standard DSCR loans usually require some skin in the game, there are ways to structure things using bridge debt or other leverage options if the property is a deep enough discount.

1Reply
See this reply in the discussion

7 Replies

Jump to latestLatest
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    8mo

    Yes, this is very possible with a DSCR loan!

    0Reply
  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 712 posts · 254 votes
    8mo

    Hey @Joselyn Woodard, welcome to BP!
    Yes, it is possible to purchase a rental property through an existing LLC, but how it works depends on the type of financing you're considering.

    Since you mentioned no-cash financing or a DSCR (Debt Service Coverage Ratio) loan, options may include:

    • Seller financing: The seller acts as the lender, and the property can be purchased directly through your LLC.

    • Hard money or private loans: These loans are often asset-based rather than income-based, making them suitable for LLCs.

    • Partner or joint-venture funding: Bringing in an investor or partner to fund the purchase through the LLC.

    Keep in mind that lenders may require personal guarantees, even when purchasing through an LLC, and the LLC must be properly set up with its EIN and operating agreement to hold property.

    JCREIG Capital Funding
    WebsiteView Page
    0Reply
  • Pierre Guirguis
    Lender · Marlboro, NJ · Member since 2025 · 243 posts · 150 votes
    8mo

    Yes, an LLC can absolutely purchase a rental property, including with DSCR financing.

    The key distinction is that “no cash” usually doesn’t mean zero cash. With DSCR loans, lenders focus on the property's income covering the debt, but they still typically require:

    - A down payment (often 20–25%),

    - Closing costs and reserves,

    - And a property that underwrites on actual or market rents.

    True no-cash scenarios usually involve something else layered in, like seller financing, equity from another property, or a structure where cash is coming from outside the deal (not the lender).

    DSCR works well for LLCs when the income and leverage are realistic, but it doesn't remove the need for equity entirely.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    8mo
    Quote from @Joselyn Woodard:

    Hello , is it possible to purchase a rental property through an existing LLC? If so how would that work with no cash financing or dscr loan?


    Yes. New or old you can purchase a property with an LLC on a DSCR loan or cash. The LLC just has to be in good standing.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Jeff Roth
    Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 468 posts · 259 votes
    8mo

    Hi Joselyn from Atlanta, Georgia-

    Great question! You asked if you can purchase a rental property through an existing LLC and how that works with financing or using a Debt Service Coverage Ratio (DSCR) Loans.

    Yes, you can buy a property using an existing LLC although you may want to have a separate LLC for each property.

    DSCR loans require you close in a LLC.

    You can write the offer in your personal name and state in the contingencies that you may transfer ownership into an LLC at closing.

    DSCR are great loan products but you do have to have the minimum to put down and a decent credit score.

    Many of our busy investors prefer these loans to a full doc conventional loans.

    To Your Success!

    0Reply
  • Eric Clark
    Lender · OR · Member since 2025 · 53 posts · 2 votes
    8mo

    Yes, it's definitely possible. In fact, most business-purpose lenders actually prefer or even require that you close in an LLC rather than your personal name. It keeps the deal clean and professional.

    The 'no cash' part is where it gets a bit more involved. While standard DSCR loans usually require some skin in the game, there are ways to structure things using bridge debt or other leverage options if the property is a deep enough discount.

    1Reply
  • Doug Clark
    Lender · Member since 2025 · 41 posts · 13 votes
    8mo

    Yes you can purchase through an llc. lenders recommend this actually. it depends, a few options is seller financing, own cash, or jv. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free